Most Americans are still contending with the financial impact of the COVID-19 pandemic, according to the latest set of findings from Northwestern Mutual’s 2021 Planning & Progress Study. The research finds more than half (58 percent) of U.S. adults aged 18+ say they are in financial recovery mode, but among them nine of out ten (89 percent) express confidence that they will ultimately achieve a full financial comeback.
The annual study found that both personal savings and retirement nest eggs have grown year over year: Average personal savings increased over ten percent ($65,900 to $73,100), while average retirement savings have seen a bigger jump of 13 percent ($87,500 to $98,800).
Among the behaviors that people say they’ve adopted and expect to maintain going forward are:
- Reducing living costs/spending (e.g., cancel subscriptions, eat out less, etc.) – 45 percent
- Paying down debt – 34 percent
- Increasing investing – 33 percent
- Regularly revisiting financial plans – 29 percent
- Increasing use of tech/digital solutions to manage finances – 28 percent
- Increasing retirement contribution/savings – 25 percent